OTTAWA—Canada is in a period of heightened economic anxiety due to U.S. trade and tax policy, the International Monetary Fund said Monday, warning it could have a profound impact on investment and growth in the country for an extended period.
The warning from the Washington-based agency emerges just as tensions between Canada and the U.S. over trade took a dramatic, negative turn. Last week, the Trump administration moved to place tariffs on steel and aluminum from Canada, as well as Mexico and the European Union, on national-security...